Last week, gold and silver prices fell. In dollar terms, the former fell 0.9% to end at $2,044.2 per ounce, while the latter fell 2.9% to end at $23.1 per ounce.
On MCX, gold futures fell by 1% to end the week at ₹62,557 (per 10 grams). Silver futures fell 2.5% to end at 72,587 pounds (per kg).
MCX-Gold (¥62,557)
Gold futures (February contract) fell last week and is currently hovering around the 20-day moving average, which is hovering at ₹62,500. This is potential support.
Below ₹62,500, there is another important support at ₹61,700. Until the latter takes effect, the bias will be bullish, even if the chart suggests the bulls are losing traction.
If there is a rebound from current levels, gold futures could reach ₹63,800 this week. However, if the support at ₹61,700 fails, it could fall to ₹60,000.
Trade strategy: We had suggested a buy at ₹62,600. Please hold this transaction. However, we keep our stop loss firm at ₹61,500 as there are signs of a correction. Book a profit of ₹63,800.
MCX-Silver (¥72,587)
Due to mid-week decline, silver futures (March series) posted a weekly loss and ended at ₹72,587. There is support at ₹71,400 that could halt the decline.
If there is a rebound from ₹71,400, silver futures can rise to ₹75,000. It is unlikely that this price will be exceeded this week.
However, if the contract falls below ₹71,400, it will open the door for a fall to the support at ₹68,000. Support after that is ₹66,500.
Trade strategy: Risk-averse traders can refrain from trading. Silver futures with a high risk appetite can buy silver futures with a stop loss of ₹70,400 if the price falls to ₹71,800. Clear this transaction for ₹74,900.